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BlockFi To Pay $100 Million To The SEC As Part Of Ongoing Investment

They might have to pay $100 million in fines. In this case, people who know what’s going on say the SEC is going to fine the crypto-lending platform $50 million for selling unregistered stocks. Another $50 million will be paid to five states where BlockFi is being investigated, sources say.

BlockFi is getting closer to the end of a regulatory clampdown.

Bloomberg says that BlockFi is close to a deal with regulators to settle claims that its high-yield earning crypto lending offerings are illegal. The report said that the penalties could be announced as soon as next week, based on sources who did not want to be named. Also, as part of the settlement, BlockFi will stop opening interest-bearing accounts for people in the US.

However, BlockFi hasn’t been able to back up the claim. An update from the company said that BlockFi was still in talks with both the SEC and state regulators.

“We have been in productive ongoing dialogue with regulators at the federal and state level. We do not comment on market rumors, the update said.”

The New Jersey-based crypto company said that investors could rest easy knowing that their money was safe and that it would keep making money.

It has been going on since July, when the state of New Jersey issued a summary cease and desist order that said BlockFi Interest Accounts (BIAs) are unregistered securities under New Jersey law. The order also said that BlockFi could not open new BIA accounts anywhere in the world.

People in Kentucky soon got a similar order from their state government. They also got orders asking for information from regulators in states such as Texas, Alabama (and Vermont). In November, the SEC stepped in.

When BlockFi users see yield rates that can reach 10%, they want to know if they are real. BlockFi has answered questions about whether or not these rates are real. This is how the company says it can keep the interest rates up as it lends the funds to big businesses and other groups.

The SEC has been getting more and more interested in the crypto industry

Crypto lending platforms and exchanges are also being looked into by the SEC. Gemini, Celcius, and Voyager Digital Ltd. are some of them. The SEC wants to go after even more crypto platforms, even though the company has mostly agreed to work with them.

Watchdog chair Gary Gensler has said that the group will be looking into crypto platforms in 2022. This is the first time that he has said this.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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